Surge Energy (SGY) AI Stock Analysis

• Market Cap: C$652.82M
• Dividend Yield: 7.59%
• Average Volume (3M): 610.39K
• Price to Earnings (P/E): 14.7
• Beta (1Y): 1.01
• Revenue Growth: -7.36%
• EPS Growth: N/A
• Country: CA
• Employees: 83
• Sector: Energy
• Sector Strength: 52
• Industry: Oil & Gas Exploration & Production
• EPS (TTM): 0.07
• Shares Outstanding: 98,912,760
• 10 Day Avg. Volume: 748,369
• 30 Day Avg. Volume: 610,386
• PEG Ratio: 0.03
• Price to Book (P/B): 0.79
• Price to Sales (P/S): 0.88
• P/FCF Ratio: 6.98
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: C$9.00
• Price Target Upside: 37.27% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 69 Neutral
• Price Target: C$7.50 ▲(14.33% Upside)

The score is driven mainly by improving financial performance with strong operating cash flow and positive free cash flow, supported by a high dividend yield and a moderate P/E. Offsetting these positives, technical indicators show muted/negative near-term momentum and the company’s earnings profile remains volatile with slightly lower TTM revenue.

Surge Energy Business Overview & Revenue Model

Company Description

Surge Energy Inc. explores for, develops, and produces oil and gas in western Canada. The company holds interest in the Greater Sawn Lake assets located in Northern Alberta; Valhalla/Wembley property located in northwestern Alberta; Sparky assets located between Provost and Wainwright in eastern Alberta and western Saskatchewan; and Shaunavon properties located to the southwest of Swift Current, Saskatchewan. It holds an average working interest of approximately 84% in approximately 123,884 net developed acres and approximately 83% in approximately 68,031 net undeveloped acres in Greater Sawn area; approximately 70% in approximately 22,920 net developed acres and approximately 72% in approximately 10,680 net undeveloped acres in Valhalla area; and approximately 90 % in approximately 59,655 net developed acres and 98% in approximately 47,398 net undeveloped acres in Sparky area. As of December 31, 2021, it held interests in 362 net oil and 20 net gas wells in Greater Sawn area; 100 net oil and 9 net gas wells in Valhalla area; 424 net oil and 6 net gas wells in Sparky area; and 185 net oil wells, as well as an average working interest of approximately 100% in approximately 24,249 net developed acres and 12,021 net undeveloped acres in the Shaunavon properties. The company was formerly known as Zapata Energy Corporation and changed its name to Surge Energy Inc. in June 2010. Surge Energy Inc. was incorporated in 1998 and is headquartered in Calgary, Canada.

How the Company Makes Money

Surge Energy generates revenue primarily through the exploration, development, and production of oil and natural gas. The company's key revenue streams include the sale of crude oil, natural gas, and natural gas liquids. Surge Energy operates in core areas with substantial reserves, allowing for efficient extraction and production. Additionally, the company may engage in strategic partnerships or joint ventures to enhance operational efficiency and expand its production capabilities. Market factors such as commodity prices, production volumes, and operational efficiencies significantly influence the company's earnings.

Surge Energy Financial Statement Overview

Summary

Surge Energy exhibits mixed financial performance. Revenue growth is positive, but net income is negative, reflecting profitability challenges. The balance sheet is stable with moderate leverage, and cash flow is robust despite declining free cash flow.

Income Statement

Surge Energy's income statement reveals some challenges, with a negative net income of -$53.72 million for the latest year. The net profit margin is negative, reflecting losses despite a gross profit margin of approximately 53.64%. Revenue growth is observed in recent years, moving from $558.64 million to $665.30 million, indicating a positive trend. However, the absence of EBIT highlights operational challenges.

Balance Sheet

The balance sheet shows moderate leverage with a debt-to-equity ratio of 0.31, which is relatively stable. Stockholders' equity has decreased from $843.98 million to $738.51 million, indicating a decrease in shareholder wealth. The equity ratio stands at 54.05%, suggesting a reasonable portion of the company is financed by equity rather than debt.

Cash Flow

Cash flow analysis shows a robust operating cash flow of $278.65 million for the latest year, with free cash flow slightly declining from $84.57 million to $83.54 million. The operating cash flow to net income ratio is strong, but the free cash flow growth rate is negative, posing potential concerns for future liquidity.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	616.16M	665.29M	558.64M	734.47M	414.64M	215.82M
Gross Profit	314.97M	356.90M	348.63M	464.61M	243.96M	86.28M
EBITDA	298.97M	163.24M	307.51M	340.70M	542.12M	-570.93M
Net Income	44.70M	-53.72M	15.75M	231.72M	407.61M	-747.30M
Balance Sheet
Total Assets	1.36B	1.37B	1.48B	1.55B	1.28B	707.96M
Cash, Cash Equivalents and Short-Term Investments	20.49M	7.59M	0.00	0.00	0.00	0.00
Total Debt	242.09M	232.12M	282.18M	347.92M	337.06M	405.60M
Total Liabilities	614.81M	627.64M	636.79M	711.75M	762.06M	774.18M
Stockholders Equity	742.89M	738.51M	843.98M	838.32M	513.38M	-66.22M
Cash Flow
Free Cash Flow	94.73M	83.54M	84.57M	106.18M	-3.30M	19.42M
Operating Cash Flow	271.04M	278.65M	266.14M	276.13M	100.48M	72.19M
Investing Cash Flow	-180.20M	-153.00M	-177.56M	-332.27M	-16.00M	-42.67M
Financing Cash Flow	-81.85M	-118.05M	-88.58M	56.15M	-84.48M	-29.52M

Surge Energy Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 6.56
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:SGY, the sentiment is Negative. The current price of 6.56 is below the 20-day moving average (MA) of 6.80, below the 50-day MA of 6.97, and above the 200-day MA of 6.29, indicating a neutral trend. The MACD of -0.11 indicates Positive momentum. The RSI at 40.12 is Neutral, neither overbought nor oversold. The STOCH value of 15.22 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:SGY.

Surge Energy Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
VLE	82 Outperform	C$834.81M	2.42	58.06%	―	23.77%	198.71%
SOIL	80 Outperform	C$459.53M	4.33	12.26%	―	24.36%	-55.40%
TNZ	73 Outperform	C$687.95M	3.37	98.62%	―	194.52%	10204.44%
SGY	69 Neutral	C$652.82M	14.66	5.87%	7.59%	-7.36%	―
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%
SNM	52 Neutral	C$646.98M	37.50	5.65%	―	46.17%	-82.95%
OBE	48 Neutral	C$565.12M	-2.67	-14.96%	―	-11.85%	-307.86%

Surge Energy Corporate Events

Surge Energy Announces January 2026 Dividend

Surge Energy Inc. has announced a cash dividend of $0.043333 per share to be paid on January 15, 2026, for shareholders of record on December 31, 2025. This dividend reflects the company’s ongoing commitment to providing shareholder returns and may impact its market positioning by reinforcing investor confidence in its financial strategies.

The most recent analyst rating on (TSE:SGY) stock is a Hold with a C$9.00 price target. To see the full list of analyst forecasts on Surge Energy stock, see the TSE:SGY Stock Forecast page.

Surge Energy Announces December 2025 Dividend

Surge Energy Inc. has announced a cash dividend of $0.043333 per share to be paid on December 15, 2025, for shareholders of record on November 30, 2025. This announcement reflects Surge’s commitment to enhancing shareholder returns and may positively impact its market positioning by demonstrating financial stability and operational success.

The most recent analyst rating on (TSE:SGY) stock is a Buy with a C$9.00 price target. To see the full list of analyst forecasts on Surge Energy stock, see the TSE:SGY Stock Forecast page.

Surge Energy Reports Strong Q3 2025 Results and Strategic Board Appointment

Surge Energy Inc. reported strong financial and operational results for the third quarter of 2025, with production averaging 23,622 boepd, surpassing budget estimates. The company generated $70.1 million in adjusted funds flow and $37.2 million in free cash flow, allowing for strategic investments and debt reduction. Surge’s operational success is driven by better-than-expected well performance in its core areas, particularly through innovative drilling methods that have significantly increased production rates. The company also announced the appointment of Mr. Myles Bosman to its Board of Directors, signaling a strategic focus on strengthening its leadership team.

The most recent analyst rating on (TSE:SGY) stock is a Buy with a C$9.50 price target. To see the full list of analyst forecasts on Surge Energy stock, see the TSE:SGY Stock Forecast page.

Surge Energy Announces November 2025 Dividend

Surge Energy Inc. has announced a cash dividend of $0.043333 per share for October 2025 production, payable on November 17, 2025, to shareholders of record on October 30, 2025. This move aligns with Surge’s strategy to enhance shareholder returns and reflects its strong operational focus on generating free cash flow through the development of high-quality oil reservoirs.

The most recent analyst rating on (TSE:SGY) stock is a Buy with a C$9.50 price target. To see the full list of analyst forecasts on Surge Energy stock, see the TSE:SGY Stock Forecast page.